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New Evidence on Class Size Effects: A Pupil Fixed Effects Approach

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  • Nadir Altinok
  • Geeta Kingdon

Abstract

The impact of class size on student achievement remains a thorny question for educational decision makers. Meta-analyses of empirical studies emphasise the absence of class-size effects but detractors have argued against such pessimistic conclusions because many of the underlying studies have not paid attention to the endogeneity of class-size. This paper uses a stringent method to address the endogeneity problem using TIMSS data on 45 countries. We measure the class size effect by relating the difference in a student’s achievement across subjects to the difference in his/her class-size across subjects. This (subject-differenced) within-pupil achievement production function avoids the problem of the non-random matching of children to specific schools, and to classes within schools. The results show a statistically significant effect of class size for 16 countries but in only 10 of them is the effect negative, and the effect size is very small in most cases. Several robustness tests are carried out, including control for students’ subject-specific ability and subject-specific teacher characteristics, and correction for possible measurement error. Thus, our stringent approach to addressing the problem endogeneity confirms the findings of meta-analyses that find little support for class size effects. We find that class-size effects are smaller in resource-rich countries than in developing countries, supporting the idea that the adverse effect of larger classes increases with class-size. We also find that class size effects are smaller in regions with higher teacher quality.

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Bibliographic Info

Article provided by Department of Economics, University of Oxford in its journal Oxford Bulletin of Economics and Statistics.

Volume (Year): 74 (2012)
Issue (Month): 2 (04)
Pages: 203-234

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Handle: RePEc:bla:obuest:v:74:y:2012:i:2:p:203-234

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References

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  1. Hanushek, Eric A., 2006. "School Resources," Handbook of the Economics of Education, Elsevier.
  2. Eric A. Hanushek, 2002. "The Failure of Input-based Schooling Policies," NBER Working Papers 9040, National Bureau of Economic Research, Inc.
  3. Petra E. Todd & Kenneth I. Wolpin, 2003. "On The Specification and Estimation of The Production Function for Cognitive Achievement," Economic Journal, Royal Economic Society, vol. 113(485), pages F3-F33, February.
  4. Alan Krueger, 1997. "Experimental Estimates of Education Production Functions," Working Papers 758, Princeton University, Department of Economics, Industrial Relations Section..
  5. Kenneth I. Wolpin & Mark R. Rosenzweig, 2000. "Natural "Natural Experiments" in Economics," Journal of Economic Literature, American Economic Association, vol. 38(4), pages 827-874, December.
  6. Thomas S. Dee, 2007. "Teachers and the Gender Gaps in Student Achievement," Journal of Human Resources, University of Wisconsin Press, vol. 42(3).
  7. Ammermüller, Andreas & Dolton, Peter J., 2006. "Pupil-teacher gender interaction effects on scholastic outcomes in England and the USA," ZEW Discussion Papers 06-60, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  8. Holmlund, Helena & Sund, Krister, 2005. "Is the Gender Gap in School Performance Affected by the Sex of the Teacher?," Working Paper Series 5/2005, Swedish Institute for Social Research.
  9. Michael Kremer, 2003. "Randomized Evaluations of Educational Programs in Developing Countries: Some Lessons," American Economic Review, American Economic Association, vol. 93(2), pages 102-106, May.
  10. Aslam, Monazza & Kingdon, Geeta, 2011. "What can teachers do to raise pupil achievement?," Economics of Education Review, Elsevier, vol. 30(3), pages 559-574, June.
  11. Geeta Gandhi Kingdon, 2006. "Teacher characteristics and student performance in India: A pupil fixed effects approach," Economics Series Working Papers GPRG-WPS-059, University of Oxford, Department of Economics.
  12. Caroline M. Hoxby, 2000. "The Effects Of Class Size On Student Achievement: New Evidence From Population Variation," The Quarterly Journal of Economics, MIT Press, vol. 115(4), pages 1239-1285, November.
  13. Joshua D. Angrist & Victor Lavy, 1999. "Using Maimonides' Rule To Estimate The Effect Of Class Size On Scholastic Achievement," The Quarterly Journal of Economics, MIT Press, vol. 114(2), pages 533-575, May.
  14. Geeta Kingdon & Francis Teal, 2008. "Teacher Unions, Teacher Pay and Student Performance in India: A Pupil Fixed Effects Approach," CESifo Working Paper Series 2428, CESifo Group Munich.
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Cited by:
  1. Metzler, Johannes & Woessmann, Ludger, 2010. "The Impact of Teacher Subject Knowledge on Student Achievement: Evidence from Within-Teacher Within-Student Variation," IZA Discussion Papers 4999, Institute for the Study of Labor (IZA).
  2. Hanushek, Eric A. & Woessmann, Ludger, 2010. "The Economics of International Differences in Educational Achievement," IZA Discussion Papers 4925, Institute for the Study of Labor (IZA).
  3. Stephen Gibbons & Sandra McNally, 2013. "The Effects of Resources Across School Phases: A Summary of Recent Evidence," CEP Discussion Papers dp1226, Centre for Economic Performance, LSE.

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